Correlation Between Lider Faktoring and Garanti Faktoring
Can any of the company-specific risk be diversified away by investing in both Lider Faktoring and Garanti Faktoring at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Lider Faktoring and Garanti Faktoring into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lider Faktoring AS and Garanti Faktoring AS, you can compare the effects of market volatilities on Lider Faktoring and Garanti Faktoring and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Lider Faktoring with a short position of Garanti Faktoring. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lider Faktoring and Garanti Faktoring.
Diversification Opportunities for Lider Faktoring and Garanti Faktoring
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lider and Garanti is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Lider Faktoring AS and Garanti Faktoring AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Garanti Faktoring and Lider Faktoring is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Lider Faktoring AS are associated (or correlated) with Garanti Faktoring. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Garanti Faktoring has no effect on the direction of Lider Faktoring i.e., Lider Faktoring and Garanti Faktoring go up and down completely randomly.
Pair Corralation between Lider Faktoring and Garanti Faktoring
Assuming the 90 days trading horizon Lider Faktoring AS is expected to under-perform the Garanti Faktoring. In addition to that, Lider Faktoring is 1.29 times more volatile than Garanti Faktoring AS. It trades about -0.04 of its total potential returns per unit of risk. Garanti Faktoring AS is currently generating about 0.06 per unit of volatility. If you would invest 1,940 in Garanti Faktoring AS on September 1, 2024 and sell it today you would earn a total of 33.00 from holding Garanti Faktoring AS or generate 1.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Lider Faktoring AS vs. Garanti Faktoring AS
Performance |
| Timeline |
| Lider Faktoring AS |
| Garanti Faktoring |
Lider Faktoring and Garanti Faktoring Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lider Faktoring and Garanti Faktoring
The main advantage of trading using opposite Lider Faktoring and Garanti Faktoring positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lider Faktoring position performs unexpectedly, Garanti Faktoring can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Garanti Faktoring will offset losses from the drop in Garanti Faktoring's long position.| Lider Faktoring vs. Politeknik Metal Sanayi | Lider Faktoring vs. Gentas Genel Metal | Lider Faktoring vs. Galatasaray Sportif Sinai | Lider Faktoring vs. MEGA METAL |
| Garanti Faktoring vs. Silverline Endustri ve | Garanti Faktoring vs. Trabzonspor Sportif Yatirim | Garanti Faktoring vs. Akcansa Cimento Sanayi | Garanti Faktoring vs. Sodas Sodyum Sanayi |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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